This report analyses whether the Capital Requirements Regulation (CRR) together with the Capital Requirements Directive IV (CRD IV) have a pro-cyclical effect, as mentioned in the EBA mandate in Article 502 of the CRR. Pro-cyclicality is defined as 'the dynamic interactions (positive feedback mechanisms) between the financial and the real sectors of the economy.' A pro-cyclical capital requirement regulation refers to a regulation which tends to amplify business cycle fluctuations and cause or exacerbate financial instability.